I was on a webinar that had a strong emphasis on asset protection with a generational wealth protection perspective. This got me looking into what facts I can find on generational wealth.
Do you own a business? Do you have your children working for you in your business? If so, do they actually work or are they glorified tokens slowing down the real work?
It is one of the beliefs that generational wealth comes from a family business. Not all children of wealth are given a roadmap of how to maintain and grow it, if given the chance to run the family business.
There is no easy transition on how the parents’ business runs or ran, simply because you’re a blood relative does not give you intuition. Some generations don’t even believe younger people are capable of managing money well.
According to a study, 24 percent of baby boomers think their kids will not be able to handle wealth properly until they’re 40, and 50 percent of wealthy individuals over the age of 70 agree.
Financial advisers recommend breaking that cycle and giving the next generation a plan of action with directions on how to spend, save, give back in philanthropic efforts and build sustainable wealth.
I know that several clients have locked up the purse strings till the kids are older in their estate documents.